Boeing Shares Soar on Rare Double Upgrade and FAA 737 MAX Certification

Boeing's stock surged nearly 7% on Monday after two major developments boosted its turnaround narrative. BNP Paribas upgraded Boeing to 'Outperform' from 'Underperform', marking a rare double upgrade, and raised its price target to $300, implying an upside of nearly 39%. The firm said the 'post-COVID era of uncertainty' for Boeing is over, with certifications expected to drive inventory liquidation and improve operational stability. BNP Paribas also sees a multi-billion-dollar tailwind from higher 737 MAX production as aircraft output ramps up.

The Federal Aviation Administration (FAA) certified the long-delayed 737 MAX 7 after nearly a decade of delays, removing a key regulatory hurdle for the aircraft. The agency required key improvements, including updates to the flight-control software and engine anti-ice system. Boeing is also awaiting FAA certification for the larger 737 MAX 10 and the 777X.

Stocktwits traders said the analyst upgrade and MAX 7 approval strengthen Boeing's recovery story, with one trader calling it 'an important upgrade' and another saying it removes another hurdle for the company's turnaround. BA shares have gained around 6% year to date.